Remarks made by PayPal CEO Dan Schulman during an interview with the World Economic Forum earlier this year could shed light on the company’s attempt to pull $2,500 from users’ accounts if they promote “misinformation.”
PayPal, which has deplatformed multiple entities and commentators for their political and social views, had unveiled a forthcoming change to its acceptable use policy that would have banned the promotion of “misinformation,” as well as “hate, violence, racial or other forms of intolerance that is discriminatory.” Within one day of The Daily Wire breaking news of the policy change, PayPal claimed that the new guidelines were published “in error” and apologized “for the confusion this has caused.”
Schulman, who has led PayPal since 2014 and is actively involved in the World Economic Forum, told the organization during a January interview that his approach to business involves moving the needle on social issues as well as earning profits.
“Trust extends well beyond whether you deliver an excellent product or service. Doing that is very necessary, but it’s not sufficient,” he asserted. “To be a company that embodies trust, your mission and values should make it clear that you stand for more than just maximizing profit. That you stand up for social issues that are important, and you do the right things to help create a better world.”
PayPal garnered controversy in 2016 after the company opposed a North Carolina law that barred individuals from using washrooms for people of the opposite sex. “I immediately made the decision that we were going to withdraw our plans to open an operations center there in a week,” Schulman explained. “Because that was a clear assault against people for their gender identity and their sexual orientation.”
“Saying that you have values and not acting on them is worse than not having any values,” Schulman explained. “That’s what causes employees to revolt, that’s how you sow distrust with customers or regulators.”
Among other entities, the World Economic Forum is a leading proponent of stakeholder capitalism, an approach to investing that encourages executives to consider the needs of employees, communities, and other parties in addition to shareholders, and the use of corporate power to advance political agendas in the global economy. The philosophy has drawn criticism for shifting executives’ gaze away from maximizing value for shareholders.
Corporate involvement in contentious political and social issues likewise provokes skepticism among consumers and investors. PayPal trended on social media over the weekend as thousands of users expressed their disdain for the acceptable use policy and announced that they intended to cancel their accounts. The company’s stock plummeted on Monday as the backlash appeared to spook investors, causing PayPal to lose over $6 billion in market value.
Earlier this year, an exclusive poll from The Daily Wire showed that American investors would prefer that companies commit solely to the pursuit of profits. Although 29% of respondents agreed it is a “good thing” for companies to leverage their financial power for political or social means supported by executives, 58% said it is a “bad thing.”
